Changes have been made to the format and content of this publication. Cross-classifications of data included in previous issues may be available on request.

DATA QUALITY

When interpreting the results in this publication it is important to take into account factors that may affect the reliability of estimates. These factors are described in the Non-sampling error section of the Technical note.

While no revisions to previous cycle data have been applied to the Higher education, Government and Private non-profit sectors, there have been significant revisions to 2002-03 Business sector data. See the Revisions section of the Technical note for further detail.

INQUIRIES

For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or Kirsty Rothenbury on Perth (08) 9360 5382.

MAIN FEATURES

EXPENDITURE ON R&D

In 2004-05, Gross expenditure on R&D (GERD) was $15,772.9 million. This represented an increase of 19.4% ($2,561.3 million) over 2002-03.

Gross Expenditure on R&D, by sector

1996-97

1998-99

2000-01

2002-03

2004-05

$m

$m

$m

$m

$m

Business

4 234.7

4 094.7

4 982.6

r6 940.3

8 446.2

Government

Commonwealth

1 266.6

1 179.4

1 404.8

1 531.3

1 573.4

State/territory

797.7

863.6

951.0

950.9

977.3

Total

2 064.3

2 043.1

2 355.8

2 482.2

2 550.7

Higher education

2 307.6

2 555.1

2 789.8

3 429.6

4 282.8

Private non-profit

185.8

225.3

289.0

359.5

493.2

Total

8 792.4

8 918.2

10 417.2

r13 211.6

15 772.9

r revised

Since 1996-97, GERD has increased by an average of 9.9% per year.

Gross expenditure on R&D

GERD AS A PROPORTION OF GDP

GERD represented 1.76% of Gross domestic product (GDP) in 2004-05, up from 1.69% in 2002-03.

GERD as a proportion of GDP(a)

Australia's GERD/GDP ratio remained below the OECD average of 2.26%. The following table shows the GERD/GDP ratios for selected OECD countries.

GERD/GDP RATIOS OF OECD COUNTRIES

2000-01

2001-02

2002-03

2003-04

2004-05

%

%

%

%

%

Sweden

na

4.25

na

3.95

na

Finland

3.38

3.38

3.43

3.48

3.51

Japan

2.99

3.07

3.12

3.15

3.13

Iceland

2.73

3.04

3.08

2.92

na

Korea

2.39

2.59

2.53

2.63

2.85

United States of America

2.74

2.76

2.65

2.68

2.68

Germany

2.45

2.46

2.49

2.52

2.49

Denmark

na

2.39

2.51

2.56

2.48

Austria

1.91

2.03

2.12

2.20

2.24

France

2.15

2.20

2.23

2.18

2.16

Canada

1.94

2.13

2.06

2.00

1.99

Belgium

1.97

2.08

1.94

1.89

1.90

United Kingdom

1.86

1.87

1.89

1.88

na

Netherlands

1.82

1.80

1.72

1.76

1.78

Australia

1.51

na

r1.69

na

1.76

Norway

na

1.60

1.67

1.73

1.61

Czech Republic

1.23

1.22

1.22

1.26

1.27

Ireland

1.13

1.10

1.10

1.16

1.20

New Zealand

na

1.13

na

1.14

na

Italy

1.05

1.09

1.13

1.11

na

Spain

0.91

0.92

0.99

1.05

1.07

Hungary

0.79

0.94

1.01

0.94

0.89

Portugal

0.80

0.85

0.80

0.78

na

Turkey

0.64

0.72

0.66

na

na

Greece

na

0.65

na

0.62

na

Poland

0.66

0.64

0.58

0.56

0.58

Slovak Republic

0.65

0.64

0.58

0.58

0.53

Mexico

0.37

0.39

0.44

0.43

na

Total OECD

2.23

2.27

2.24

2.25

2.26

na not available

r revised

Main Science and Technology Indicators, 2006/1, OECD, Paris, 2006

Sector

The Business sector accounted for the largest proportion of GERD in 2004-05 (53.5% or $8,446.2 million) followed by the Higher education sector (27.2% or $4,282.8 million). These two sectors also recorded the strongest growth in absolute terms between 2002-03 and 2004-05 (up $1,506.0 million and $853.2 million respectively).

GERD, by sector

Percentage growth in expenditure on R&D since 2002-03 was highest for the Private non-profit sector (up 37.2% or $133.6 million) and lowest for the Government sector (up 2.8% or $68.6 million).

Type of expenditure

In 2004-05, Current expenditure accounted for 93.5% or $14,754.7 million of GERD, which in turn was comprised of $7,145.0 million in Labour costs and $7,609.7 million in Other current expenditure. Capital expenditure totalled $1,018.2 million over the period.

Growth in GERD since 2002-03 was driven by a 21.3% ($2,586.8 million) increase in Current expenditure. Capital expenditure decreased by 2.4% ($25.5 million).

GERD, by type of expenditure

Source of funds

The major sources of funds for R&D in 2004-05 were Business (51.6% or $8,145.8 million) and the Commonwealth government (35.8% or $5,639.8 million). These two sources also recorded the largest absolute increases since 2002-03 (up $1,449.7 million and $1025.8 million respectively).

GERD, by source of funds

Type of activity

In 2004-05, the majority of GERD was directed into Experimental development (39.1% or $6,174.3 million) and Applied research (37.2% or $5,873.3 million). Applied research showed the strongest growth from 2002-03, increasing by $1,307.2 million (28.6%). Pure basic research recorded the lowest growth increasing by $237.6 million (19.1%).

GERD, by type of activity

Location

Locations in New South Wales and Victoria accounted for over half (59.5%) of GERD in 2004-05 ($5,047.5 million and $4,337.7 million respectively). New South Wales and Victoria also recorded the highest growth since 2002-03, increasing by $726.0 million and $649.0 million respectively. However, Western Australia recorded the fastest growth over the period, increasing by 57.4% (or $633.7 million).

GERD, by selected locations

In 2004-05, GERD as a proportion of Gross State Product (GSP) was highest for the Australian Capital Territory (4.24%) and South Australia (2.02%). Western Australia reported the largest growth in GERD as a proportion of GSP, increasing from 1.29% in 2002-03 to 1.72% in 2004-05.

GERD as a proportion of GSP(a), by location

NSW

Vic.

Qld

SA

WA

Tas.

NT

ACT

%

%

%

%

%

%

%

%

2002-03

1.57

1.87

1.36

2.10

1.29

1.83

1.36

np

2004-05

1.65

1.95

1.36

2.02

1.72

1.68

np

4.24

np not available for publication but included in totals where applicable, unless otherwise indicated

(a) See paragraph 4 of the Explanatory notes.

Socio-economic objective (SEO)

In 2004-05, almost two thirds of GERD was directed into the Economic development SEO (65.2% or $10,281.8 million). The next most prevalent SEOs were Society (19.6% or $3,089.8 million) and Non-oriented (5.8% or $913.2 million). The distribution of GERD across SEOs was largely unchanged from 2002-03.

GERD, by socio-economic objective

Research field

As in previous years, the major research fields varied between sectors. Engineering and technology accounted for the largest share of R&D expenditure in the Business sector (57.1% or $4,820.3 million), while the largest share of Government sector R&D expenditure was directed into Agricultural, veterinary and environmental sciences (29.9% or $761.8 million). Medical and health sciences was the major research field for both the Higher education (25.3% or $1,082.4 million) and Private non-profit sectors (72.3% or $356.7 million).

HUMAN RESOURCES DEVOTED TO R&D

Human resources devoted to R&D in 2004-05 totalled 119,384 person years of effort (PYE), an increase of 11.4% (12,175 PYE) since 2002-03.

Human resources devoted to R&D, by sector

1996-97

1998-99

2000-01

2002-03

2004-05

PYE

PYE

PYE

PYE

PYE

Business

26 412

25 109

28 391

r35 939

41 656

Government

Commonwealth

10 377

9 353

9 565

10 185

9 335

State/territory

8 813

9 069

8 587

8 357

7 654

Total

19 190

18 422

18 152

18 541

16 989

Higher education

42 739

45 502

46 287

49 612

56 809

Private non-profit

2 351

2 551

2 791

3 117

3 930

Total

90 692

91 583

95 621

r107 209

119 384

r revised

Sector

The large majority of Human resources devoted to R&D in 2004-05 came from the Higher education (47.6% or 56,809 PYE) and Business (34.9% or 41,656 PYE) sectors. Together these two sectors accounted an increase of 12,914 PYE devoted to R&D between 2002-03 and 2004-05. However, this growth was partly offset by a decrease of 1,552 PYE for the Government sector over the period.

Human resources devoted to R&D, by sector: PYE

Type of resource

Researchers accounted for over two thirds of the total Human resources devoted to R&D in 2004-05 (68.5% or 81,739 PYE). Since 2002-03, Researcher effort devoted to R&D has increased by 11.7% (8,566 PYE). The next highest growth occurred for Other staff (up 3,262 PYE or 21.2%).